On February 21, 2024, a pivotal set of decisions was made by the Prime Minister Narendra Modi-led Union Cabinet, which could significantly impact the future trajectory of India’s space industry and its commitment to social welfare. Among the decisions, the Cabinet approved revisions to the existing Foreign Direct Investment (FDI) policy in the space sector, with the aim of ameliorating private sector involvement, escalating the potential for employment, and assimilating Indian companies into international frameworks, Mr. Thakur conveyed.
The updated FDI policy authorizes 100% foreign direct investment under the automatic route for the space sector, particularly for satellite manufacturing, operation, and related ventures. Companies can now attract foreign investors without needing government approval for up to 74% FDI for satellite manufacturing and operation, as well as for satellite data products and the ground or end-user elements. Investment beyond this threshold will require government approval. Moreover, the automatic route encompasses 49% FDI for launch vehicles, related systems, or subsystems, and the establishment of spaceports, with a higher investment requiring governmental consent. The bid to make the sector autonomous and ensure technology modernization is palpable, with an ambition for the nation’s companies to establish manufacturing facilities locally.
The flood management and border areas program has also been extended, with a significant budget of ₹4,100 crore over five years, from 2021-22 to 2025-26, aiming to support states with proper funding to manage flooding efficiently. Additionally, the Cabinet sanctioned the Ministry of Home Affairs’ proposal to pursue the